Maruti Suzuki revenue tops Rs 50,000 crore, net profit slips

New Delhi: Maruti Suzuki’s quarterly net sales crossed the Rs 50,000-crore mark for the first time in January-March, driven by continued robust sales after last year’s GST cuts, but higher costs dragged profit below expectations.

The country’s largest carmaker’s March quarter net sales rose 29% to Rs 50,078.70 crore from Rs 38,839.1 crore in the year-ago period.

Its standalone net profit fell by 7% to Rs 3,590.5 crore from Rs 3,857.3 crore during this period, primarily due to higher commodity costs and mark-to-market impact.


As per Bloomberg estimates, Maruti Suzuki’s net profit was expected to grow by 10% year-on-year to Rs 4,086 crore last quarter while its revenues were projected to rise 25% to Rs 50,835 crore.

The company said while the mark-to-market impact on debt instruments resulted in some notional loss on income statement as per accounting norms, it will not impact the realistically the value of the securities.

It posted a 30% year-on-year jump in operating profit to an all-time high of Rs 4,409.2 crore in the fourth quarter. Total expenses grew 28% to Rs 48,113.14 crore.

“This performance was made possible because of steep growth in the domestic market in the second half of the year owing to the GST reduction,” Maruti Suzuki chairman R C Bhargava said.

The company recorded its highest-ever quarterly sales of 676,209 units, an increase of 11.8% compared to the year-ago period. While domestic sales stood at 538,994 units, exports were at an all-time quarterly high of 137,215 units.

Bhargava, said “sales were restricted by a limitation in the production capacity as evidenced by about 190,000 pending customer orders at year end, including nearly 130,000 orders in the small car segment.”
In addition, the dealer inventory was at a low of about 12 days’ stock, he noted.

For the entire financial year, the company reported record domestic sales, exports, net sales and net profit.

Its net sales grew 20.2% on year to Rs 1,75,369.5 crore in FY26 while net profit inched up by about 1% to Rs 14,445.4 crore.

The company achieved record total sales of 2,422,713 units, of which domestic sales were at 1,974,939 units and exports were 447,774 units. In FY25, the total sales were at 2,234,266 units, comprising domestic sales of 1,901,681 units and exports of 332,585 units.

Shares of the company closed at Rs 12,891.70 apiece on the BSE on Tuesday, down by 2.53% from Monday’s close.

Bhargava said the reset in GST rates to 18% from 28% earlier has triggered demand for small cars and he expects the momentum to sustain.

“India is a country where small cars have a long-term future. If the large part of the population is to have access to decent mobility, they would need small cars. We will see more small cars in the market as capacity is added,” he said.

Maruti Suzuki has earmarked a capex of Rs 14,000 crore for FY27 to add capacity in Kharkhoda (Haryana) and Hansalpur (Gujarat). Two new lines will add production capacity of 250,000 units each at the two sites. This fiscal, the company will be able to manufacture an additional 250,000 vehicles.

“We are running at 100% capacity, have pending bookings and low inventory. Our growth will be determined by our ability to add capacity,” Bhargava said. “Every year we do expect growth to happen in the industry because demand has revived post GST cuts. The government understands lower taxes benefit the economy.”

The company plans to introduce products both in the 18% and 40% GST segments to cater to all types of customers.

About the impact of the West Asia conflict, Bhargava said there is some issue over high commodity costs and a possible increase in fuel prices, but the company doesn’t expect any major disruptions in sales or operations immediately.

The board of directors of Maruti Suzuki recommended final dividend of Rs 140 per share.